It is essential to construct an efficient material flow system for the successful introduction of automated manufacturing systems. Automated Guided Vehicle System (AGVS) plays a significant role more and more in modern manufacturing environments, because of the flexibility and the precision they offer. However, as the size and the complexity of systems increase, the problems of dispatching, routing and scheduling of AGVs become complicated due to their independent and asynchronous demands. In this paper, we review relevant papers, and provide a new and more efficient method for dispatching AGV, named MEVTT (Minimum Empty Vehicle Travel Time) and demonstrate its performance and efficiency using simulation.